Key Takeaways for DocuSign Stock as of September 2026
- Earnings Beat: Revenue hit $875.75M, edging past the $867.16M Street estimate by 0.99% and rising 9.38% YoY, while adjusted EPS of $1.16 topped estimates by 6.85% and climbed 26.09% YoY.
- IAM Acceleration: 15.1% of total ARR now flows through Intelligent Agreement Management, up from 12.6% in Q1, as documents ingested through Agreement Manager crossed 300M.
- Guidance Raise: DocuSign raised fiscal 2027 ARR growth guidance to 8.5% to 9.0% YoY.
DocuSign beat on revenue and EPS this quarter, then raised its ARR guide behind IAM’s growth. See the full numbers on TIKR for free →
DocuSign Stock Rides IAM’s Surge to a Clean Beat-and-Raise Quarter
DocuSign (DOCU) closed its fiscal second quarter, ended July 31, 2026, with revenue of $875.75 million, a 0.99% beat against the $867.16 million Street estimate and a 9.38% climb from the $800.64 million reported a year earlier. DocuSign stock, trading near $66 heading into the print, now has a platform story sitting underneath the headline beat. Adjusted EPS reached $1.16, topping estimates by 6.85% and up 26.09% year over year, while GAAP EPS of $0.40 missed the $0.41 estimate by 3.29% even as it grew 33.33% from last year. That gap between the adjusted and GAAP prints traces back to stock-based compensation, which fell to 17% of revenue, three points better than a year ago.
The bigger driver sits inside the mix. Intelligent Agreement Management, DocuSign’s AI-native contract platform known as IAM, now accounts for 15.1% of total annual recurring revenue, up from 12.6% just one quarter earlier. Customers have pushed more than 300 million documents through IAM’s Agreement Manager, and CEO Allan Thygesen framed the shift directly on the Q2 earnings call: “Our platform strategy is working as reflected in IAM now accounting for 15.1% of total ARR, up from 12.6% in Q1.” That acceleration is why management now expects IAM to reach 18% to 19% of total ARR by the end of the fiscal year, and why full-year ARR growth guidance moved up to a range of 8.5% to 9.0%, from 8.0% in fiscal 2026.
Dollar net retention rose to 103% from 102% the prior quarter, an improvement CFO Blake Grayson attributed to expansion doing more of the work than renewals alone. Customers spending over $300,000 in annual contract value grew 14% year over year to nearly 1,300, the second straight quarter of double-digit growth in that cohort, and DocuSign closed its largest-ever deals in both U.S. public sector and Latin America during the quarter.
None of that came at the expense of cash generation. Free cash flow rose 35% to $296 million, funding $307 million in share buybacks that cut diluted shares outstanding 8% year over year to 193 million, with $2.1 billion still authorized for future repurchases. DocuSign’s MCP server, which opens IAM to outside AI agents through ChatGPT, Slack, Gemini and Perplexity, reaches general availability at the end of September, adding a distribution channel management is still learning how to size.
IAM’s climb to 15.1% of ARR is rewriting DocuSign’s growth mix this quarter. Pull the full breakdown on TIKR for free →
TIKR Values DocuSign Stock at $89, Pricing In IAM’s Platform Shift
TIKR’s mid-case model values DocuSign stock at $89 by January 2031, implying a 35% total return from the current price of $66, or 7% annualized over 4.4 years.
That 7% annualized rate is a conservative path for a stock whose own quarter just posted double-digit revenue and earnings growth, positioning DocuSign stock as a steady compounder rather than a re-rating call.
The target is reachable because the dynamics inside this quarter’s print already support it: IAM’s climb to 15.1% of ARR is funding both the raised full-year guide and the buyback program cutting the share count that feeds EPS growth. As IAM compounds toward the 18% to 19% of ARR management expects by year end, TIKR’s mid-case path reads less like a forecast and more like an extension of a trend already showing up in the numbers.
TIKR’s model puts DocuSign stock at $89, a 35% total return from here. Check the full valuation model on TIKR for free →
Should You Invest in DocuSign, Inc.?
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Disclaimer:
Please note that the articles on TIKR are not intended to serve as investment or financial advice from TIKR or our content team, nor are they recommendations to buy or sell any stocks. We create our content based on TIKR Terminal’s investment data and analysts’ estimates. Our analysis might not include recent company news or important updates. TIKR has no position in any stocks mentioned. Thank you for reading, and happy investing!
